The Dar al-Mal was established by Ahmad Bey as part of his European-inspired reform drive during the 1840s, which had also included the establishment of the Bardo Military Academy in 1840. Authorized by beylical decree of 7 September 1847, it was headquartered in the building known as Sidi Amer Barracks on Sidi Ali Azouz Street in the Medina of Tunis.[1]: 198 The notes bore the seal of the Bey as well as the signature of finance minister Mustapha Khaznadar.[2]
The issuance was initially fully covered, with reserves in specie of four million piastres for an authorization to issue notes for that same aggregate amount.[1]: 199 In 1848, however, the Tunisian economy was hit by the ripple effects of the financial and political turmoil in Europe.[1]: 207 The bank's activity ceased when Ben Ayed fled from Tunisia in 1852.[3] Under Ahmad Bey's successor Muhammad II ibn al-Husayn, the Tunisian authorities sought compensation on what they alleged had been Ben Ayed's financial self-dealing during his leadership of the Dar al-Mal, what became known as the affaire Mahmoud Ben Ayed (fr).[4]
